I.P.MUKERJI,J. - (1.) Principally, two objections have been taken by learned Counsel for the respondents, to this application under Section 11 of the Arbitration and Conciliation Act , 1996 made by the petitioner seeking appointment of an arbitrator.
(2.) The clauses relating to conciliation and arbitration were referred to by learned Counsel. There clauses 17 and 18 set out below: "17. Conciliation: a. All questions, claims disputes or difference of any kind whatsoever arising out of or in connection with or concerning this contract at any time, whether before or after determination of the contract, shall be referred by the parties here to for conciliation before a conciliatory Forum/Body. The Conciliatory forum/body will be composed of the following members. Nominees of SAIL Plants--Independent of officer handling the contract. (to be nominated by the head of Materials Management Department of respective plant) Nominee of the Contractor/Supplier b. The parties in dispute would place their facts in writing before the Body/Forum and the process of conciliation would be completed within the period of three months from the date of reference to the Conciliatory Forum/Body. c. On failure of the conciliation, the aforesaid question, claims, disputes and/or differences shall be referred by the parties here to for the decision by a sole arbitrator to be appointed as here in after mentioned. 18. Arbitration:- Matters in question, claims, dispute and or difference in respect of the contract to be submitted to arbitration as aforesaid shall be referred for decision to as sole Arbitrator to be appointed by MD/CEO, DSP/BSP.BSL/RSP/ISP (SAIL). Before appointing the Sole Arbitrator MD/CEO, DSP/BSP/BSL/RSP/ISP (SAIL) shall nominate three names out of which the contractor shall give his consent for one of them for appointment as Sole Arbitrator, falling which after 30 days of the issuance of the better informing three names MD/CEO, DSP/BSP/BSL/RSP/ISP (SAIL) shall have the power to appoint one of the three notified persons as the Sole Arbitrator."
(3.) It was said by Mr. Gangopadhyay for the respondents that only on failure of conciliation could the arbitration clause be invoked. In this case the conciliation proceedings had not been concluded, he submitted.;